On this Wednesday morning, Bitcoin is experiencing a slight rise of just 0.10% over 24 hours, its price reaching $25,725. The financial landscape is still bubbling with anticipation as Davis Polk, a leading Grayscale legal advisory firmardently plead for SEC approval of Bitcoin ETF in cash from his client. At the same time, there is a growing feeling according to which the cryptocurrency market significantly undervalues the upside potential of spot Bitcoin ETFs.
Finally, a recent report shed light on six affluent traders who have amassed considerable fortune mostly through bitcoin investments : enough to give prospects to the market in a context that is still somewhat wait-and-see.
Grayscale Law Firm Davis Polk Urges SEC to Approve Spot Bitcoin ETF
Grayscale Investmentrepresented by its legal counsel Davis Polkurges the United States Securities and Exchange Commission (SEC) to approve the conversion of Grayscale’s Bitcoin Trust (GBTC) into an exchange-traded product (ETF). This follows the recent court victory achieved on August 29, after the SEC initially rejected Grayscale’s proposal. THE Grayscale CEO Michael Sonnensheindisclosed this information and pointed out that the Bitcoin Trust is ready to operate as an ETF upon SEC approval.
Grayscale argues that the Trust should not be treated any differently than ETFs investing in Bitcoin futures traded on the Chicago Mercantile Exchange (CME). The company is also concerned that the SEC has rejected applications for spot Bitcoin ETFs when there are already Bitcoin futures ETPs on the CME. Grayscale indeed argued that futures and spot contracts are closely correlated and that Surveillance Sharing Agreements (SSAs) with the CME provide the same capabilities to detect market malfeasance.
One cannot help but notice Grayscale’s continued efforts to offer investors exposure to Bitcoin through a spot ETF. If Grayscale succeeds in converting its Bitcoin Trust into an ETFthis could potentially create a new way for investors to invest in Bitcoin, mechanically increasing the accessibility and liquidity of the cryptocurrency market.
Cryptocurrency market underestimates the bullishness of spot Bitcoin ETFs
K33formerly known as Arcane Research, is a cryptocurrency research company whose analysts believe the potential upside impact of a spot Bitcoin exchange-traded fund (ETF) approval is being underestimated by the crypto market. In their report dated September 5, they claim that recent developments have significantly improved the odds of a spot Bitcoin ETF receiving SEC approval. However, according to them, the prices of Bitcoin or other major cryptocurrencies do not yet reflect this sentiment.
K33 analysts suggest that if the SEC approves a spot ETF, this could lead to substantial capital inflows and increase the buying pressure on Bitcoin. They also believe that the risk of rejection is minimal. While some analysts put a 75% chance ETFs will be approved within the yeardespite the SEC’s postponement, K33 experts say the market outlook for ETFs is fundamentally incorrect.
In addition, K33 analysts express their bullish on Ether (ETH) and suggest it could outperform Bitcoin in the coming months due to the strong momentum leading up to a futures ETF listing. They also draw parallels with Bitcoin’s 60% gain leading to the launch of the first Bitcoin futures-based ETF in 2021.
How Six Wealthy Traders Made Their Fortunes With Bitcoin
A recent report from London-based investment migration consultancy Henley & Partners reveals that there are more than 40,000 crypto-millionaires worldwide, holding mostly bitcoin. The “Crypto Wealth Report”, published on September 5, reveals that of the 88,200 millionaires who own cryptocurrencies globally, around 40,500 are invested in Bitcoin.
Moreover, of the 182 people with more than $100 million in cryptocurrency, 78 of them are Bitcoin investors. What is even more impressive is that six of the 22 crypto traders with over $1 billion amassed their wealth primarily through trading Bitcoin.
It is estimated that in July 2023, there were approximately 56.1 million millionaires worldwide. However, only a small percentage of them, less than 0.2%, invest significantly in cryptocurrencies. There recent increase in cryptocurrency inquiries from millionaires is a clear indication of growing recognition of crypto-based wealthas they attempt to hedge against possible cryptocurrency bans and tax policies.
In addition, a surge in the price of the BTC/USD pair could spark more interest among high net worth individuals in Bitcoin as an investment, which could increase its importance in the financial landscape.
Bitcoin Price Prediction
Bitcoin struggles to exceed the $26,200 threshold. Although there was an effort to bounce off the $25,350 support, the digital currency failed to break above the crucial level, suggesting bearish momentum. Currently, the value of BTC is below the $26,000 benchmark and a bearish trend line is highlighted, with resistance around $25,650. The primary resistance levels are set at $26,000 and $26,200.
If bitcoin managed to break through the $26,200 level, it could aim for immediate targets of $26,500 and $27,000. On another side, failure to climb above $26,000 could send Bitcoin price lower, with two major supports set at $25,350 and $25,000. Beyond that, a drop below $25,000 could potentially trigger a steeper drop down to $24,500.
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Disclaimer: This linked article presents the views of crypto industry players and is not part of the editorial content of Cryptonews.com.